Confusion regarding self-employed fiancee and work permits

[RedditMusic 3]

Hey, everyone! For starters, thank you all so much for creating and contributing to such a broad and deep repository of knowledge and stories about the various visa processes. It's no exaggeration to say that this forum has been truly life-altering.

 

So, here's the story! My fiancee is in Canada, I'm in the US. She works as a freelance artist, primarily making her income on shops like Etsy, from YouTube, and through artistic commission work. We don't live together yet, but of course plan to change that when the K-1 is granted.

 

My question is: Once she crosses into the US on her K-1 Visa, and our 90 day marriage timer starts, does her freelance art qualify as "work"? As in, is she legally disallowed from making any money from art while physically in the US until a Work Permit is granted?

She also receives monthly royalties from YouTube (and other sources) for work she did in the past. Does receiving payments for past work constitute "work" that would require a permit?

 

My hours of research have been very frustrating and confusing because most people don't have the weirdly specific situation we're in. I was hoping the VJ forums might have some people that could shed light on our problem! Thanks for reading. -Amber

[Redro 4,599]

4 hours ago, RedditMusic said:

Hey, everyone! For starters, thank you all so much for creating and contributing to such a broad and deep repository of knowledge and stories about the various visa processes. It's no exaggeration to say that this forum has been truly life-altering.

 

So, here's the story! My fiancee is in Canada, I'm in the US. She works as a freelance artist, primarily making her income on shops like Etsy, from YouTube, and through artistic commission work. We don't live together yet, but of course plan to change that when the K-1 is granted.

 

My question is: Once she crosses into the US on her K-1 Visa, and our 90 day marriage timer starts, does her freelance art qualify as "work"? As in, is she legally disallowed from making any money from art while physically in the US until a Work Permit is granted?

She also receives monthly royalties from YouTube (and other sources) for work she did in the past. Does receiving payments for past work constitute "work" that would require a permit?

 

My hours of research have been very frustrating and confusing because most people don't have the weirdly specific situation we're in. I was hoping the VJ forums might have some people that could shed light on our problem! Thanks for reading. -Amber

Another member has a similar situation and posted in the Working & Traveling During US Immigration forum. 

Here is the conversation:

 

[RedditMusic 3]

9 minutes ago, Kor2USA said:

Another member has a similar situation and posted in the Working & Traveling During US Immigration forum. 

Here is the conversation:

 

We've checked out that thread, it's quite good! But there are things it doesn't cover. For example, on YouTube, she's taking ad revenue payments which are effectively royalties for past work. She wouldn't actively be working in the US, unlike this influencer person in the linked thread.

 

And with Etsy, another of her primary income sources—I could easily run the store unsupervised if she handed me the keys, and she wouldn't lift a finger to work at any point. (I think she'd actually quite enjoy that arrangement!) In such a case, if the funds are still going through her account because of work I do, would that count as "work" on her part? Questions like this are ones not covered or even touched on in the threads I've been able to dig up tonight. I'm praying to find some clarity, so I figured I'd make a thread for us!

[Redro 4,599]

10 minutes ago, RedditMusic said:

We've checked out that thread, it's quite good! But there are things it doesn't cover. For example, on YouTube, she's taking ad revenue payments which are effectively royalties for past work. She wouldn't actively be working in the US, unlike this influencer person in the linked thread.

 

And with Etsy, another of her primary income sources—I could easily run the store unsupervised if she handed me the keys, and she wouldn't lift a finger to work at any point. (I think she'd actually quite enjoy that arrangement!) In such a case, if the funds are still going through her account because of work I do, would that count as "work" on her part? Questions like this are ones not covered or even touched on in the threads I've been able to dig up tonight. I'm praying to find some clarity, so I figured I'd make a thread for us!

Perhaps message the OP of the thread to find out what they discovered. I believe they mention their partner also has a passive income from ad revenue from old content.

 

[Chancy 6,233]

*** Moved from K1 Process & Procedures to Working & Traveling During US Immigration -- topic relates to authorization to work after US entry with K1 visa before EAD ***

 

[Boiler 43,434]

Better to go CR1 and avoid the issue.

[RedditMusic 3]

1 hour ago, Boiler said:

Better to go CR1 and avoid the issue.

Even if we're now only an estimated month from NOA2 on a K1? What would the CR1 process be? I run to Canada and marry her, then start the paperwork? I'm unclear on specifically how that'd all work. We never really considered it an option because of the pandemic making the border so onerous to cross. 😔

Edited November 8, 2021 by RedditMusic

[Boiler 43,434]

Depends how important being authorized to work is and nobody here can answer that for you

[JeanneAdil 6,197]

this would be residual payments for past work and still requires u to pay income taxes on the monies

IRS states

 

The residual income you receive is of the same character as the income you received when you were in business and fully self-employed. Consequently, it would still be subject to self-employment tax. You also receive a tax deduction for half of the self-employment tax you pay (on Line 27 of your Form 1040

 

Is residual income considered earned income?

 

Residual or passive income is taxed in the same way as earned income. The amount you pay is based on your adjusted gross income and federal tax bracket, in addition to your bracket for state and local taxes, if they apply. You pay income taxes for the year in which the gains are received.

 

 

Short answer "shouldn't not have any income until u have the EAD permit"

[Lemonslice 4,553]

1 hour ago, JeanneAdil said:

this would be residual payments for past work and still requires u to pay income taxes on the monies

IRS states

 

The residual income you receive is of the same character as the income you received when you were in business and fully self-employed. Consequently, it would still be subject to self-employment tax. You also receive a tax deduction for half of the self-employment tax you pay (on Line 27 of your Form 1040

 

Is residual income considered earned income?

 

Residual or passive income is taxed in the same way as earned income. The amount you pay is based on your adjusted gross income and federal tax bracket, in addition to your bracket for state and local taxes, if they apply. You pay income taxes for the year in which the gains are received.

 

 

Short answer "shouldn't not have any income until u have the EAD permit"

 

"Short answer "shouldn't not have any income until u have the EAD permit""

 

That is simply incorrect. No one has to sell existing real estate, investments, or businesses; just make sure not to engage in active work.

Income =/= work

 

Immigration rules are also different than IRS ones.

Edited November 8, 2021 by Lemonslice

[SalishSea 16,770]

4 hours ago, RedditMusic said:

Even if we're now only an estimated month from NOA2 on a K1? What would the CR1 process be? I run to Canada and marry her, then start the paperwork? I'm unclear on specifically how that'd all work. We never really considered it an option because of the pandemic making the border so onerous to cross. 😔

Well, that is the primary drawback of doing a K-1.  EAD/AP is currently taking around 8 months.  

[Coco8 1,039]

Ad revenue from old content would not be work.

 

Imagine if someone comes on a K1 and they rent out their home in their country of origin. They would be making money by renting the place out, but it's not work in the US. 

 

In terms of IRS, I'd ask an accountant, but IRS and GC are different. 

[Rocio0010 5,562]

8 minutes ago, Coco8 said:

Ad revenue from old content would not be work.

 

Imagine if someone comes on a K1 and they rent out their home in their country of origin. They would be making money by renting the place out, but it's not work in the US. 

 

In terms of IRS, I'd ask an accountant, but IRS and GC are different. 

With all due respect, you shouldn’t be giving advice on a topic that you don’t know much about. 
Rent is considered to be passive income; it IS in fact income, just not made out of work. K1s, as well as F1s (provided they meet the substantial presence test) and permanent residents, are considered US persons for taxes. US persons are taxed on their world wide income -active or passive. So revenues from foreign rent should be declared as income -even though it’s not work and it’s not within the US.

[Coco8 1,039]

12 minutes ago, ra0010 said:

With all due respect, you shouldn’t be giving advice on a topic that you don’t know much about. 
Rent is considered to be passive income; it IS in fact income, just not made out of work. K1s, as well as F1s (provided they meet the substantial presence test) and permanent residents, are considered US persons for taxes. US persons are taxed on their world wide income -active or passive. So revenues from foreign rent should be declared as income -even though it’s not work and it’s not within the US.

 

What's your problem? I said that for tax purposes to ask an accountant. Tax residency and permanent residency are two different things. 

 

F1, if it's the student visa, you never have to report worldwide income. It's a nonresident alien category. Only US citizens and green card holders report worldwide income. 

 

For K1, I don't know how you'd report income between the time you entered the US and the time you receive the GC, so if the partner makes a substantial amount from ads, they need to ask an accountant. 

 

[Rocio0010 5,562]

6 hours ago, Coco8 said:

Tax residency and permanent residency are two different things

Indeed they are.

 

6 hours ago, Coco8 said:

It's a nonresident alien category. Only

So if they are two different things, the fact that an F1 is a non resident alien category shouldn’t matter for tax purposes. Thus, I believe that, say you’re an F1 student who meets the substantial test, and you have income from rent in your country, then you should report it with taxes.

 

7 hours ago, Coco8 said:

K1, I don't know how you'd report income between the time you entered the US and the time you receive the GC, so

Suppose you arrive in January 2020  and you receive your gc in July 2021 . By the time you file your taxes in 2022, you should report all income between January 2020 and July 2022.